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A buddy wants to invest in real estate during a 2 year period holding. He says the price for buying is 575,000. And the Net

A buddy wants to invest in real estate during a 2 year period holding.

He says the price for buying is 575,000.

And the Net Operating Income is 50,000 for the first year and 66,000 for the second and it will stabilize in the last year at 75,000.

The loan to value ratio is 60%. The mortgage rate is gonna be 4.2% and every month its 0.3470%. 2 year term. Amortize for 25 years. The cap rate is 5%. Equity return that is needed is 8% and the weighted average cost of capital is 7%.

How do you calculate the levered Net Present Value?

*I'm getting a bunch of different numbers everytime I do this problem. I dont if my calculator is set incorrectly or what but if someone can help I'd appreciate it.*

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